Labour to expand Covid-era subsidy for apprenticeships if elected

Author: Thomas Coughlan,
Publish Date: Sun, 28 Jun 2026, 2:39pm

Labour has promised to increase funding for apprenticeships if elected in November, extending subsidies for employers to take on apprentices by an additional year and expanding the number of trades that are covered by the scheme to road construction, water treatment, hairdressers, and others.

Currently, employers in certain industries can claim $500 a month for a year if they take on an apprentice.

Labour, if elected would extend this subsidy for a second year of training an apprentice — bringing the policy closer to the original scheme.

Labour costed the scheme at $56.5 million a year on average, rising to $71.5m once fully phased in. This works out as $226m over the traditional four-year forecast period.

It plans to fund the scheme by dipping into future operating allowances, the money to fund new spending as well as the increasing cost of core existing spending such as health and education.

Labour thinks 27,000 apprentices will benefit from the scheme by the end of the decade, up from 9000 last year.

Apprenticeship Boost was originally introduced during the pandemic as a subsidy of $1000 a month for the first year of training an apprentice and $500 a month for the second year at a cost of $380.6m. That was later topped up when the programme was extended.

The coalition Government scaled back the scheme to $500 a month for just one year and cut the number of sectors that could apply for the scheme.

Labour made the announcement at its election year congress in Wellington.

Labour Leader Chris Hipkins said: “Too many young New Zealanders are struggling to find good jobs while our country faces growing skills shortages”.

“When Labour introduced Apprenticeship Boost in 2020, it helped tens of thousands of apprentices get the training they needed for secure, well-paid careers. National cut that support to help fund tax breaks to tobacco companies and property speculators,” he said.

Labour tertiary education spokesperson Shanan Halbert said: “National pulled the rug out from under thousands of apprentices at a time when youth unemployment is soaring and businesses are crying out for skilled workers”.

The scheme will trigger at different times, with expanded eligibility to new trades beginning after a future Labour Government’s first Budget on July 1, 2027. The expansion of the subsidy to two years would begin on July 1, 2028.

The party is also promising the scheme’s apprentices a start-up grant of $1000 from July 1, 2027.